PUMPED UP: A new player in the fuel market could mean lower prices, something that would please Alysha Dimartino. Picture: Mark Calleja Source: The Courier-Mail

CAMPBELL Newman has promised to do what he can to encourage greater competition in the fuel industry, to help bring down petrol prices.

Speaking on ABC radio this morning, Mr Newman said his government would not be reinstating the nine-cents a litre fuel subsidy, abolished by the previous Labor Government.

"The reason is, the financial issue. I forget the cost but it was at least $140 million, $150 million a year, I'm sorry about that but that's where we are,'' said the Premier.

"The only thing that can be done is that if there are new entrants that want to come into Queensland, independent fuel operators that may need the assistance of the State Government through say a port that is still owned by the state, if they need access to wharves, if they need red tape cut, that's what I can do.

"And I will because I want as much competition out there in that vital service area, because it does hurt people. It's a real cost of business.''

He said the days of a fuel price regulation were unlikely to be revisited for "many many years in this state''.

Apart from petrol prices,the Premier was questioned by listeners about a wide range of topics, from the lack of go card top up facilities in Kenmore to the need for a drag strip and burn out area in southern Queensland.

Mr Newman also rejected claims by medical staff at the Royal Children's Hospital, that his government was axing a Nursing Research Unit.

And he again blamed the Federal Government for 1000 nursing job cuts throughout Queensland.

The deal includes the Gold Coast-based Neumann family's chain of 125 service stations stretching from Gladstone to the Victorian border and a crucial $18 million bulk seaboard fuel terminal at Brisbane's Eagle Farm.

Puma's Australian general manager Ray Taylor promised the deal would "bring more robust competition to the country's petroleum market".

Neumann and Matilda executive general manager Charles Wright said the immediate plan was to "get decent buy prices" especially in north Queensland.

"What this does is give us an opportunity to have a much larger organisation behind us with similar growth aspirations to become a leading independent in Australia and offer better value for money in the fuel industry," he said.

Analysts yesterday welcomed the addition of more competition in the fuel market, but warned that cheaper fuel was not necessarily a certainty.

Kevin Hughes, of HEH Australian Petroleum Consultancy, said he was not totally sold on the idea that the Puma deal meant cheaper fuel for Neumann.

"Everyone really works off pretty much the same cost base in terms of international petrol pricing," Mr Hughes said.

But he expected the Federal Government would welcome the addition of a new independent in the marketplace.

Puma officials confirmed aggressive expansion plans for Australia, including growth of the Matilda and Neumann service station network nationwide as well as a new $65 million petroleum import facility in Mackay.

Puma Energy global chief Pierre Eladari said significant funds would be committed towards the Australian effort.

"Puma Energy has grown rapidly in recent years through organic growth and by buying downstream assets from ExxonMobil, BP and Chevron," he said.

" Each time we have retained local staff and grown the businesses.

The move, subject to regulatory approvals and procedural consents, will be Trafigura's first real foothold in Australia.

Mr Hughes said the group once provided the import facility for Woolworths, but lost their terminal storage in Sydney.

"It went over to Shell so they were basically forced from the market because they had no terminal storage facility."

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